Informist, Friday, Dec 31, 2021
By Aayushi Parekh
MUMBAI – Yields on corporate bonds ended steady in the secondary market today amid low trade volumes as most participants refrained from placing large bets on the last day of the quarter and the calendar year, dealers said.
Today, mainly mutual fund houses and a few insurance companies were said to have been the most active. Participation was limited, with most foreign banks and foreign portfolio investors avoiding large positions ahead of the year-end book closure.
Market participants have largely remained on sidelines this week taking a break on account of the year-end. Till 1500 IST today, trade volumes reported on the National Stock Exchange aggregated to 16.53 bln rupees.
Bonds issued by REC, National Bank for Agriculture and Rural Development, Housing and Urban Development Corp, Power Finance Corp, Aditya Birla Finance, Food Corp of India, Indian Railway Finance Corp, State Bank of India and National Housing Finance were traded the most today.
“Minimal improvement in yields was seen today as some investors stepped in to buy in a small quantum. However, there was no significant movement due to the general lack of participants,” a fund manager said.
With the recent uptick in yields, money managers expect this upward momentum to continue at least in the beginning of the next calendar year as risks from the new Omicron variant still remains.
According to merchant bankers, a slew of issuances is expected from public sector companies from next week that were keeping to the sidelines ahead of the year-end.
Today, deals aggregating 19.71 bln rupees were reported on the National Stock Exchange, against 36.74 bln rupees on Thursday. BSE recorded deals worth 14.73 bln rupees, compared with 22.17 bln rupees in the previous session.
UDAY BONDS
In the secondary market, Haryana’s 2023 Ujjwal DISCOM Assurance Yojana bonds aggregating 100 mln rupees were traded at a weighted average yield of 4.8416%, data from the RBI’s Negotiated Dealing System – Order Matching System showed.
BENCHMARK LEVELS FOR CORPORATE BONDS:
End
Edited by Aditya Sakorkar
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Source: Cogencis
